Understanding Affiliate Licensing: US Regulation Tip #5
Affiliates hoping to operate in the regulated U.S. market will need to acquire a service provider license. The Nevada Gaming Commission is requiring marketers to who provide certain services to an operator of interactive gaming to hold a license.
It can be expected that other states will hold affiliate advertisers under similar scrutiny before permitting them to work with licensed iGaming firms. This means affiliates have their work cut out for them to prepare for US regulation.
Here is what affiliates need to know about acquiring a service provider license to forge advertising relationships with iGaming providers:
Track the Big Guys
The process of receiving a service provider license as an affiliate might seem overwhelming at the onset, but there are examples to look up to. Take notice from the big guys by understanding what they are going through in order to acquire a license. Gaming regulatory bodies will probably expect similar things from affiliates.
Service provider licenses for affiliates are extensions of the major interactive gaming licensing process. Affiliates should be looking for opportunities to ride in under the umbrella of a big brand. Operators receiving a license in the U.S. may be interested in helping bring along some of their top affiliates. This could help save a lot of hassle from trying to acquire a license on your own.
Contact affiliate programs with brands seeking to acquire a license in Nevada to find out how they might be able to help you gain licensing as a marketing provider.
Clearing the Hurdles
Regulators with the Nevada Gaming Commission are looking for applicants who can maintain controls on players to prevent underage play and establish the location from which games are being accessed.
Affiliates can help gaming providers comply with the latter requirement by implementing geotargeting on their site. By ensuring that only web visitors from Nevada can access pages containing affiliate links, you will be seen as a responsible partner to operators who are chiefly concerned with compliance.
The Nevada Gaming Commission will also be looking for the following things from affiliates applying for a service provider license:
- well-kept financial records
- dispute resolution channels
- fees and taxation information
- problem gambling services
Be prepared for regulators by fitting your site with the necessary new information to pass the scrutiny of their licensing process.
Squeaky Clean Image
Pleasing the Nevada Gaming Commission is not a walk in the park. They will be strict about any questionable business practices or relationships you have. Will Hill even left the Australian market to comply with Nevada regulators since an unenforced law there technically makes their operation illegal.
The key is to distance yourself from any relationships with providers being targeted by the U.S. Affiliates will also need to examine what markets they are working in and how it’s going to look to regulatory agencies when they see you’ve been promoting iGaming where it is illegal.
Affiliates who have been profiting from the unregulated U.S. market could face penalties prior to being granted a license. Any advertising for current U.S.-facing brands should be extinguished before beginning the process of acquiring a service provider license.
Acquiring a service provider license to work as a marketer in the regulated U.S. market is a substantial hurdle to clear. With a short-term mindset, it might not seem worth it. However, most affiliates want to work in the U.S. and rightfully so. It’s the largest economy in the world and is just now beginning to come online with regulated iGaming.
Affiliates need to keep a long-term outlook when approaching the U.S. licensing process. It might not be a joy to deal with now, but having the green-light to advertise for U.S. iGaming operators could be a cash cow for decades to come.
Watch: Preparing for U.S. Regulation Webinar available free to CAP newsletter subscribers.